C-Store Retailers Say Sales Increased in 2018

In-store sales were led by strong foodservice growth; retailers optimistic about 2019 business prospects.

By NACS Online

Both fuels gallons and in-store sales increased in 2018, according to U.S. convenience store owners surveyed by NACS, the trade association that represents the convenience retailing industry.

Overall, 84% of retailers say that in-store sales increased in 2018 and 62% report that fuels gallons sold increased.

Strong sales in 2018 are one reason for an increase in retailers’ optimism about business prospects for 2019: 85% of retailers are optimistic about their prospects for the first quarter, the highest measure of optimism for the first quarter in the past five years.

Above all, retailers say that the industry’s offer of convenience continues to resonate, especially with new offers like a mobile app for customers can order food for pickup at Win Win Fillin’ Station (City of Industry, CA) or home delivery at Timewise Food Stores (Houston, TX).

Convenience stores sell nearly 80% of the fuel purchased in the United States and conduct an estimated 165 million transactions a day, making the industry a good indicator for trends related to travel and consumer spending.

The strong in-store sales were led by foodservice growth (68% of retailers say sales increased) and continued strong sales growth of better-for-you items (62% of retailers report sales increases).

Beverages were a big seller in 2018, with specialty beverages selling well at Compass Group North America’s stores (Charlotte, NC) and water and energy drinks pushing overall sales higher at Fast Break Stores (Klamath Falls, OR). Healthy food items drove sales at Romeoville Mobile (Lockport, IL) and fresh salads and other healthy options contributed to a strong year at Landhope Farms (Kennett Square, PA).

Some Concerns for 2019Retailers didn’t paint as rosy of a picture about the overall economy: only 62% say that they are optimistic about the economy, the lowest percentage in 11 quarters.

Not unexpectedly, given the tight labor market, retailers say labor issues are the biggest threat to their businesses. Top concerns cited by retailers for 2019 are:

Labor issues (59%)

Regulations/legislation (47%)

Economic concerns (41%)

Competition from other convenience stores (39%)

Competition from other formats (29%)

Potential decrease in driving/increase in gas prices (19%)

Despite concerns, retailers remain upbeat that 2019 may be a repeat of 2018 for sales—as long as the economy stays relatively strong.

“In a booming economy, I see things continuing to trend upward. We offer great food, great customer service and a clean environment in which to shop. Most of all, customers appreciate us,” said Gay Simpson, with Dutchtown Tiger Mart Inc. (Baton Rouge, LA).

The quarterly NACS Retailer Sentiment Survey tracks retailer sentiment related to their businesses, the industry and the economy. A total of 72 member companies, representing a cumulative 3,885 stores, participated in the December 2018 survey.

Our partnership with MIRA has been vey intimate and very beneficial for both of us. It’s a true partnership.”

“We piggyback on new members, MIRA sells our product, and we sell theirs. There’s a lot of team selling there, if you will. I didn’t expect that, to be honest. It’s quite unusual to have an association work that hard for a supplier.

Cindi Quinn-VenturaDTE Energy Supply

MIRA helps us have a larger voice in the government as it relates to the food industry. We have connections with many city leaders and hopefully that helps us compete with the big businesses that are moving into Detroit because of tax incentives.

Calvin PattahFood Pride, Detroit MI

It is important to give back to our great industry by doing everything possible to improve the overall well-being of MIRA members.”

“There is strength in numbers. In 2011, the retail environment will change very quickly, and it is critical that MIRA grows stronger in every aspect of our businesses.

Gary DavisPrairie Farms Dairy, Oak Park MI

MIRA has a large impact on the industry and on my family business. Having input on decision making in Lansing and Washington is essential. We need to be a strong voice of the industry to survive.

Thomas WelchHollywood Super Markets, Troy MI

Taking part in MIRA events like the trade show and annual dinner gives us opportunities to contact both current and potential customers, and most importantly – thank them for their valuable business

Bill HillmanHT Hackney

There are a lot of cynics out there that say MIRA doesn’t do much for the average member, and I’m here to tell them that they do. I am on the inside, I know what they do. People don’t realize what goes on behind the scenes, so I tell a lot of people about the work MIRA is doing and what a fantastic job Auday Arabo is doing as President & CEO.